Question 1

If a provision for an accidental death benefit is attached to a whole life insurance policy,then this provision is referred to as a:

Accepted Answer

A)  rider.
B)  waiver of premium.
C)  automatic premium loan.
D)  beneficiary.
E)  incontestability clause.F) None of the above
G) A) and E)

Question 2

Credit life insurance policies for auto loans and home mortgages are usually the best buys for the protection they offer.

Accepted Answer

A) True 
 B)False

Question 3

What are the two types of life insurance companies? Explain the basic features of each type.

Accepted Answer

There are two types of life insurance co...

Question 4

The most common type of permanent life insurance is called:

Accepted Answer

A)  whole life.
B)  term life.
C)  universal life.
D)  modified life.
E)  variable life.F) A) and D)
G) B) and D)

Question 5

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

Accepted Answer

A) True 
 B)False

Question 6

Single persons living alone usually have little or no need for life insurance.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is false?

Accepted Answer

A)  Stock companies generally sell nonparticipating policies.
B)  A participating policy usually has a somewhat higher premium than a comparable nonparticipating policy.
C)  Mutual companies generally sell participating policies.
D)  You can expect to receive a policy dividend from a stock company.
E)  Part of the premium is refunded to the policyholder in a participating policy.F) C) and D)
G) B) and E)

Question 8

What are the six methods of estimating your life insurance needs? Explain the basic principle of each method.

Accepted Answer

In determining your life insurance needs...

Question 9

Most insurance companies can determine how long a particular person will live.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following questions are important to consider when choosing an insurance agent?

Accepted Answer

A)  Is your agent available when needed?
B)  Does your agent advise you to have a financial plan?
C)  Is your agent happy to answer questions?
D)  Does your agent keep up with changes in the insurance field?
E)  All of these are important to consider.F) B) and E)
G) D) and E)

Question 11

Which type of life insurance policy requires you to pay premiums for a stipulated period,usually 20 or 30 years,or until you reach a specified age?

Accepted Answer

A)  Modified life policy
B)  Variable life policy
C)  Adjustable life policy
D)  Limited payment policy
E)  Endowment policyF) B) and C)
G) C) and E)

Question 12

A chartered life underwriter is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

Accepted Answer

A) True 
 B)False

Question 13

The life expectancy of a female at the age of 30 is 52.0 years.It means that:

Accepted Answer

A)  a 30-year-old female has the highest probability of dying.
B)  a 30-year-old female has the highest probability of living.
C)  females alive at 30 years of age are expected to live an additional 52 years on average.
D)  52.0 is the average age at which all females, age 30, will die.
E)  very few 30-year-old females will live past the age of 82.F) B) and D)
G) All of the above

Question 14

Some experts claim that credit life insurance policies are:

Accepted Answer

A)  the nation's biggest rip-off.
B)  the best buys.
C)  useful for creditors and debtors alike.
D)  less expensive than term life insurance.
E)  an excellent investment.F) A) and E)
G) C) and E)

Question 15

List some of the provisions found in most life insurance policies.

Accepted Answer

The naming of the beneficiary,the grace ...

Question 16

The "family need" method of determining life insurance needs provides a thorough estimation of your life insurance needs.

Accepted Answer

A) True 
 B)False

Question 17

The easy method of determining life insurance is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years?

Accepted Answer

A)  20
B)  40
C)  50
D)  70
E)  80F) A) and B)
G) All of the above

Question 18

Before you buy life insurance,you should determine whether you really need life insurance.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a helpful website with an online calculator to estimate life insurance needs?

Accepted Answer

A)  www.lifehexists.com
B)  www.humanlifecalculator.com
C)  www.lifecalculator.com
D)  www.kiplinger.com/insurance
E)  www.familyneeds.comF) C) and D)
G) B) and E)

Question 20

It has been shown that there is a link between an individual's education level and their life expectancy.

Accepted Answer

A) True 
 B)False

Exam 12: Life Insurance

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

Correct AnswerverifiedShow Answer

What are the six methods of estimating your life insurance needs? Explain the basic principle of each method.

Correct AnswerverifiedIn determining your life insurance needs...View AnswerShow Answer

It has been shown that there is a link between an individual's education level and their life expectancy.

Correct AnswerverifiedShow Answer

A chartered life underwriter is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

Correct AnswerverifiedShow Answer

Which of the following questions are important to consider when choosing an insurance agent?

Correct AnswerverifiedShow Answer

The easy method of determining life insurance is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years?

Correct AnswerverifiedShow Answer

Which of the following is false?

Correct AnswerverifiedShow Answer

Which of the following is a helpful website with an online calculator to estimate life insurance needs?

Correct AnswerverifiedShow Answer

The most common type of permanent life insurance is called:

Correct AnswerverifiedShow Answer

If a provision for an accidental death benefit is attached to a whole life insurance policy,then this provision is referred to as a:

Correct AnswerverifiedShow Answer

The "family need" method of determining life insurance needs provides a thorough estimation of your life insurance needs.

Correct AnswerverifiedShow Answer

Before you buy life insurance,you should determine whether you really need life insurance.

Correct AnswerverifiedShow Answer

Credit life insurance policies for auto loans and home mortgages are usually the best buys for the protection they offer.

Correct AnswerverifiedShow Answer

The life expectancy of a female at the age of 30 is 52.0 years.It means that:

Correct AnswerverifiedShow Answer

Which type of life insurance policy requires you to pay premiums for a stipulated period,usually 20 or 30 years,or until you reach a specified age?

Correct AnswerverifiedShow Answer

What are the two types of life insurance companies? Explain the basic features of each type.

Correct AnswerverifiedThere are two types of life insurance co...View AnswerShow Answer

List some of the provisions found in most life insurance policies.

Correct AnswerverifiedThe naming of the beneficiary,the grace ...View AnswerShow Answer

Some experts claim that credit life insurance policies are:

Correct AnswerverifiedShow Answer

Single persons living alone usually have little or no need for life insurance.

Correct AnswerverifiedShow Answer

Most insurance companies can determine how long a particular person will live.

Correct AnswerverifiedShow Answer

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In determining your life insurance needs...
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There are two types of life insurance co...
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The naming of the beneficiary,the grace ...
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